Sustained Domestic Demand Growth Boosts ADNOC Gas Profit

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Sustained Domestic Demand Growth Boosts ADNOC Gas Profit

ADNOC Gas PLC on Monday reported $1.27 billion in net profit for the first quarter, up 7 percent from the same three-month period last year thanks to continued growth in natural gas consumption in the United Arab Emirates. Economic growth at home lifted sales volumes, while efficient management limited the impact of a shutdown program, […]

Economic growth at home lifted sales volumes, while efficient management limited the impact of a shutdown program, the gas processing and sales arm of Abu Dhabi National Oil Co. (ADNOC) said in an online statement.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 4 percent year-on-year to $2.16 billion for the January-March 2025 period. Revenue rose 6 percent to $6.1 billion.

“Q1 also saw a year-on-year uplift in CAPEX [capital expenditure] of 43 percent as ADNOC Gas continues to make the necessary investments through the cycle to grow the business and achieve its longer-term EBITDA targets”, ADNOC Gas said. It expects to make an FID (final investment decision) on the Rich Gas Development project this year.

Free cash flow ex-working capital landed at $1.21 billion, up 6 percent year-over-year.

“This has been another outstanding quarterly performance by ADNOC Gas, supported by our resilient business model in a lower oil price market, which significantly exceeded market expectations”, commented ADNOC Gas chief executive Fatema Al Nuaimi. “These results come on the back of successful supply agreements and the optimization of our ongoing shutdown program designed to power our continued growth.

“Looking ahead, we will use the strength of our balance sheet to invest through the cycle as we seek to realize EBITDA growth of over 40 percent between 2023 and 2029”.

During the quarter ADNOC Gas secured about $9 billion worth of contracts for the long-term supply of liquefied natural gas to India Oil Corp. and Japan’s JERA Co. Inc.

ADNOC Gas also announced plans to list on the Morgan Stanley Capital International Emerging Market Index and the Financial Times Stock Exchange Emerging Market Index as early as June and September respectively, following a $2.84 billion placement of 3.1 billion shares last February.

The so-called marketed offering, the first in the UAE according to ADNOC, was priced about 43 percent higher than ADNOC Gas’ initial public offering in March 2023.

The offering, which attracted Gulf and international investors, represented four percent of ADNOC Gas’ issued and outstanding share capital and would raise its free float to 9 percent headline, the parent said at the time. ADNOC retains an 86 percent stake in ADNOC Gas.

In 2024 ADNOC Gas achieved its highest-ever yearly net income at $5 billion, driven by gas demand in the UAE.

Net income for the fourth quarter of 2024 totaled $1.38 billion, ADNOC Gas’ highest quarterly result since its public listing in 2023, it reported February 6, 2025.

Annual sales volumes grew 2 percent to 3,616 million MMBtu. ADNOC Gas covers about 60 percent of the UAE’s sales gas needs, as well as supplies over twenty countries, according to the company.

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